The purpose of this legislation is clearly set forth in the following letter from the Secretary of War, which is therefore made a part of this report: WAR DEPARTMENT, Washington, D. C., January 29, 1938.

The SPEAKER, HOUSE OF REPRESENTATIVES.

DEAR MR. SPEAKER: There is enclosed the draft of a bill to amend section 30 of the National Defense Act of June 3, 1916, as amended, for the consideration of the Congress with a view to its enactment into law.

The purpose of the proposed amendment is to organize and maintain, under proper regulation by the President, a Regular Army Reserve consisting of persons voluntarily enlisted or reenlisted therein.

The Regular Army at present strength has insufficient enlisted men to enable it to furnish a balanced force for immediate use in a theater of operations and to build up those regular units now on an inactive status. If called upon for active service, the Regular Army would at present have to take the field with small, depleted, peace-strength organizations and lacking some elements not maintained in peacetime. It would also have insufficient men to furnish the training cadres which will be so urgently necessary if the later mobilization of our potentially powerful citizen armies is to be effective.

To remedy this deficiency either a considerable increase in enlisted strength of the Regular Army is necessary or an efficient and adequate reserve should be maintained. Such a reserve to be effective, must be made up, however, of men able to take their places in the ranks without delay and they must be as well trained as the units they are to fill. Otherwise they would weaken rather than strengthen the Army. Fortunately a considerable reservoir of such trained men is available to us in the thousands of Regular Army enlisted men who annually complete their enlistment terms and return to civil life. These men have had the finest kind of military training and are in the best possible physical condition. Their reentry into the Regular Army in time of emergency would immediately increase its strength and effectiveness.

The proposed bill, should it be enacted into law, would make it possible to enlist these men in a Regular Army Reserve. Because of their Regular Army training, no further expense of training would be necessary. To reimburse them for their obligations as reservists a nominal sum of $24 per annum would be paid each one upon presentation of satisfactory report that he has complied with War Department Regulations. In event of an emergency requiring their recall to active service the sum of $3 per month of duty as a reservist not to exceed a total of $150 would be paid to each reservist upon reporting for duty. This sum should serve to reimburse them for the expenses entailed in suddenly leaving their homes. It is estimated that a reserve of approximately 75,000 could be built up in 4 years by enlisting those men, honorably discharged from the Regular Army each year, who elect to return to civil life. Its cost the first year would be $450,000, increasing by a like amount each year until it stabilized at approximately $1,800,000 per year. When the important benefits which would accrue from such a reserve are considered and when the cost is compared to that of increasing the active strength of the Regular Army, it would appear that the extra expense is well merited.

This bill will make effective the proposal made by the President in his message on January 28 in which he strongly recommended "that there be authorized and appropriated for the better establishment of an enlisted reserve for the Army the sum of $450,000."

Respectfully,

HARRY H. WOODRING,
Secretary of War.

In conformity with paragraph 2a of the rule XIII of the House Rules there is herewith printed in parallel columns the provision of the existing law and the provisions of the proposed bill:

75TH CONGRESS 3d Session

HOUSE OF REPRESENTATIVES

REPORT No. 1829

PERMITTING THE MAILING OF SMALL SAMPLES OF LIQUORS

FEBRUARY 16, 1938.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed

Mr. GEARHART, from the Committee on the Post Office and Post Roads, submitted the following

REPORT

[To accompany H. R. 8115]

The Committee on the Post Office and Post Roads, having had under consideration the bill (H. R. 8115) to amend section 340 of chapter 8 of title 18 of the United States Code of 1934 (48 Stat. 1063), approved June 19, 1934, report the same back to the House with the following amendments and, so amended, recommend that the bill do pass:

Page 1, strike out lines 3, 4, and 5, and insert in lieu thereof the following:

That the Act entitled "An Act to amend section 217, as amended, of the Act entitled 'An Act to codify, revise, and amend the penal laws of the United States,' approved March 4, 1909," approved January 11, 1929, as amended (U. S. C., title 18, sec. 340), is amended to read as follows:

Page 1, at the beginning of line 6, strike out "Sec. 340."

Page 2, line 19, after "That" insert "all"; and in line 21, page 2, after "deposited" insert "in". These two amendments are merely to insert words now appearing in existing law and omitted in the printing of the bill.

Pages 2 and 3: Strike out the proviso beginning at the end of line 21 on page 2 and continuing through lines 22, 23, 24, and 25, and on page 3 through lines 1, 2, 3, and 4, and insert in lieu thereof the following: Provided further, That nothing in this Act shall be construed so as to prevent the transmission through the mails for delivery in a foreign country or in a State, Territory, or possession of the United States wherein the possession thereof is not unlawful, of hermetically sealed samples of intoxicating liquors in this Act particularly described, if such samples are tendered for mailing in containers holding not more than eight ounces and are packed, labeled, and addressed in accordance with the standards provided by International Postal Regulations.

The committee has amended the bill so as to comply with the suggestion made by the Post Office Department in its favorable report dated August 23, 1937, and reading as follows:

Hon. JAMES M. MEAD,

POST OFFICE DEPARTMENT,
Washington, D. C., August 23, 1937.

Chairman, Committee on the Post Office and Post Roads,
House of Representatives.

MY DEAR MR. MEAD: The receipt is acknowledged of your letter of the 5th instant, requesting a report upon H. R. 8115, a bill to amend section 340 of chapter 8 of title 18 of the United States Code of 1934 (48 Stat. 1063), approved June 19, 1934.

The only change in existing law contemplated by this bill is the proviso which would allow samples of intoxicating liquors in proper containers holding not more than 8 ounces to be sent through the mail.

This measure meets with the approval of this Department, but it is believed that the reference to packing and labeling should read "in accordance with the standards provided by the International Postal Regulations."

It has been ascertained from the Bureau of the Budget that this report is in accord with the program of the President.

Very truly yours,

W. W. HOWES, Acting Postmaster General.

The objective to be obtained is the modification of section 340 of chapter 8 of title 18 of the United States Code, the statute which defines and prohibits unmailable matter. This bill will make it permissible to send small samples of wines and liquors through the mails (in quantities up to 8 ounces) when packed in accordance with the provisions of the Universal Postal Convention, which concluded its work at Cairo, Egypt, on March 20, 1934.

The committee favors the bill, believing there is no more danger of damage to the mails from possible breaking of bottles containing liquors than there is from the possibility of breakage of bottles containing patent medicines.

American manufacturers of wines and liquors are at a decided disadvantage in meeting the competition of foreigners with whom they are competing in the world market. Every other country wherein wines and liquors are produced permit their domestic vintners and distillers to avail themselves of the use of the Postal Service in the transmission of samples to prospective customers. The adoption of the Universal Postal Convention confirmed to them the right to use the mails in every country that had not legislated affirmatively against it. So far as can be ascertained, the United States is the only country in the world that has closed its mails to the sending of samples of liquor.

If this bill is enacted into law, not only will our domestic vintners and distillers be permitted to use the domestic mails for the purpose of sending samples to their prospective customers within the United States, but, under the terms of the Universal Postal Convention, they will be able to send their samples throughout the world, to wherever there is a prospective customer.

In compliance with the Ramseyer rule the following comparative print is given: